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Tips for Eliminating Credit Card Debt and Financial Advice from Your Accountant in Denver


It is more common than you would think for people to rack up credit card debt. While this can negatively impact your credit, there are options to get out of a situation. If you have thousands of dollars in credit card debt, it is best to make it a priority to create a plan to pay it down. By doing this, you will help your credit and increase your score. Learn the negative effects of having a large amount of credit card debt, a brief intro into credit and tips for paying down you large debts from your local accountant in Denver.

Cons to Racking up Credit Card Debt

Credit card debt can sneak up on you. Plus, if you have cards that have interest on them, it can expedite the process to increase the amount that is on them. Believe it or not, having a small balance on your cards it actually a good thing. It shows that you use credit and pay it off. It is when the amounts charged on them begin to creep up is when it can have a negative effect on your credit. One of the biggest cons is a high debt-to-income ratio. This occurs when you begin to exceed around 30 percent of your total credit card allowance. The more debt you accrue, the higher that debt-to-income ratio will be. The higher amount you have charged on cards, the less likely you will be to get credit in the future. Plus, when interest rates on your cards are high, it can make it difficult or time consuming to pay off. It can be done though! Don’t lose hope.

Credit 101


You credit is something you should closely monitor, whether it is your own personal credit score or your business’. Having good credit it key for loans and other financials that deal with credit. One of the biggest things to keep in mind with credit is to keep your overall utilization at or under 30 percent. Anything higher will start to impact your score. Scores ranges from the low 300s to the upper 800s. Scores above 750 are in a good range. The normal or fair range typically is between 700 and 750. Once you get in the lower 600s, you are in a poor range. This can affect how you are given credit or loans and the types of interest rates on them. Make it a goal to have a low debt-to-income ratio and a high credit score. Learn more about scores from Credit Sesame’s “Guide: Credit Score Range for Experiean, TransUnion and Equifax.”

Tips for Paying Down


When it comes to paying off your debt, it can seem overwhelming. However, with a plan, you can accomplish it. If you have multiple credit cards, focus on one. Some sources say to tackle the one with the largest interest rate, while others advise to start with the ones with the lower amounts. Weigh the pros and cons and work out ways to tackle them card by card. This will really gain momentum as once you pay down one card; you will have more money freed up in monthly payments that you can save towards other cards. Keep in mind, the more you pay off, the better your quality of life will be without the stress of dealing with credit!

Learn more on how to manage credit cards with these tips from Denver accountants on how to manage your credit card debt. For help with your accounting needs, Bloch, Rothman and Associates is your top, go-to accountant. Contact Bloch, Rothman and Associates today to take advantage of our premier services.